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Microsoft’s AI spending became cloud revenue. Meta’s became a cash-flow hole.
['Cristian Dina', 'Story By']
The Next Web
Microsoft’s spending showed up as cloud revenue.
Meta’s revenue rose 28% to $60.8bn, beating forecasts, CNBC reported.
But profit fell 14% to $15.8bn, earnings per share missed, and the shares dropped about 5% after hours.
Microsoft and Alphabet spend on AI and can point to a cloud business that rents the capacity back out.
Its spending funds its own apps and models, so investors see the cost without an obvious new revenue line.